SAN FRANCISCO, Calif., Feb. 15 /PRNewswire/ -- The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action lawsuits have been brought on behalf of purchasers of the securities of American Dental Partners, Inc. ("American Dental") (Nasdaq: ADPI) between August 10, 2005 and December 13, 2007, inclusive (the "Class Period").
If you purchased American Dental securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than March 31, 2008. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in this action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in this action.
American Dental Partners shareholders that wish to learn more about this action and how to seek appointment as lead plaintiff should visit Lieff Cabraser's website http://www.lieffcabrasersecurities.com/cases/americandentalpartners.htm or contact Meagan Sullivan toll free at (800) 541-7358.
Background on American Dental Securities Class Litigation
The actions, pending in the United States District Court for the District of Massachusetts, were brought against American Dental and certain of its officers and directors for violations of the Securities Exchange Act of 1934. American Dental's primary business is providing administrative services to dental group practices in the United States.
The complaints in the above-mentioned actions allege that during the Class Period, defendants failed to disclose that American Dental engaged in tortious and otherwise unlawful conduct in connection with providing, through a subsidiary company, PDHC, Ltd., administrative services to a Minnesota-based dental practice, Park Dental Group ("PDG"). In addition, American Dental failed to disclose that a significant portion of its reported earnings during the Class Period were allegedly derived from its wrongful conduct. Rather, American Dental allegedly falsely assured the public that a lawsuit brought by PDG against American Dental and PDHC for breach of a services agreement, among other claims, was "baseless and without merit." According to the complaints, defendants were motivated to engage in the wrongful and illegal conduct so that American Dental insiders, including certain defendants, could sell more than $20 million of their personally held American Dental stock at artificially inflated prices.
On December 12, 2007, a jury found American Dental or PDHC liable for breach of the service agreement with PDG, breach of implied covenant of good faith and fair dealing, breach of fiduciary duty, tortious interference with contract or prospective advantage, and defamation. The jury awarded PDG total compensatory damages of more than $88 million. On this news, the price of American Dental stock fell $5.36 per share, or 27.2 percent, from its closing price on December 11, 2007 to close at $14.34 per share on December 12, 2007. On the following day, December 13, 2007, American Dental reported that the jury also awarded PDG punitive damages of more than $42 million. In reaction to this news, American Dental stock fell another $9.72 per share, or 67.7 percent, to close at $4.62 per share on December 13, 2007.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. In the 2007 edition of its annual list of the plaintiffs' law firms "doing the most to shape the law," The National Law Journal selected Lieff Cabraser as one of the nation's top plaintiffs' firms. Lieff Cabraser was also a member of The National Law Journal's Plaintiffs' "Hot List" from 2003 through 2006. The firm is one of only two plaintiffs' law firms in the nation to receive this award the last five years.
For more information about Lieff Cabraser and the firm's representation of investors, please visit http://www.lieffcabrasersecurities.com.
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